The Role of Road Transport in Servicing International Trade

1. The Role of Road Transport in Servicing International Trade TARI Tashkent, 4 May 2010 Martin MARMYSecretary General

2. Future of Road Transport:Search for global solution • Increased cooperation at national, regional and international levels • Development of the complementarity of the various transport modes  harmonisation of regulations and standards and deployment of Intelligent Transport Systems • Market opening including public transport  improve efficiency through competition • Improve vocational training and education  improve professionalism and quality and sustainable development

3. Today’s Topics • This is the IRU - Structure and Priorities • Road transport regulation andUN Conventions III. Contribution of road transport to the logistics chain, economic development and the environment

4. This is the IRU

5. Evolution of IRU Membership 2010 180 Members 74 Countries Created1948 National Associations from 8 founding countries Belgium Denmark France Netherlands Norway Sweden UK Switzerland

6. Evolution of IRU Structure 1948 IRU founded in Geneva 1973 IRU Permanent Delegation to theEU established in Brussels 1998 IRU Permanent Delegation to theCIS established in Moscow 2005 IRU Permanent Delegation to theMiddle East established in Istanbul

7. The democratic structure of the IRU

8. IRU International Commissionsand Working Parties Social Affairs Economic Affairs Customs Affairs Legal Affairs Technical Affairs Road Safety Services to Transport Operators Commissions Working Parties • Dangerous Goods • Combined Transport • Taxis and hire cars with driver

9. IRU Priority Issues SustainableDevelopment Innovation Incentives Infrastructure Facilitation Trade Tourism Road Transport These are also the priorities of the IRU Academy

10. The most effectiveUN facilitation instrument TIR System

11. Geographical scopeof the TIR Convention 68 Contracting Parties 57 TIR Operational Countries Contracting Party in Admission Process 1 In Negotiation Process 3 6 Interested Parties

12. International recognition ofyour vocational training

13. International Recognition throughIRU Academy Advisory Committee UNECE United Nations Economic Commission for Europe

14. Recognition IRU AcademyCPC Manager Programme Fully compliant with European Directives96/26/EC and 98/76/EC

15. Competence IRU AcademyCPC Driver Programme Fully compliant with European Directive 2003/59/EC onProfessional Driving

16. Vocational trainingprovided by the IRU Academy CPC DRIVER PROGRAMME CPC MANAGER PROGRAMME TACHOGRAPH PROGRAMME & DRIVING & REST TIME RULES DANGEROUS GOODS (ADR) PROGRAMME “IRU ACADEMY ONLINE“ INTERNET APPLICATION TRIPARTITE HIV/AIDS PROJECT

17. WCO and IRU work together to provide facilitation learning package

18. The IRU structure should always be adapted to the changing world Change is life. The world is changing. To be successful the IRU is obliged to adapt its structure and working methods to the changing world.

19. European Union (EU)Member States

20. Commonwealth ofIndependent States (CIS)

21. Economic CooperationOrganisation (ECO)

22. Shanghai Cooperation Organisation (SCO)

23. EurAsEC

24. Country membership of the Regional Organisations

25. New IRU structure – to better serve Regional Organisations

26. Today’s Topics • This is the IRU - Structure and Priorities • Road transport regulation andUN Conventions III. Contribution of road transport to the logistics chain, economic development and the environment

27. Objective of the UNECE Mission Statement: In its 56 member countries, including Georgia and Russia, the UNECE manages 57 multilateral instruments such as International Conventions and Agreements related to: I. UNECE Regulations II. UNECE Conventions - Road Safety-Facilitation of transport - Energy saving and trade • Environmental protection

28. I. UNECE RegulationsInfrastructure • European Agreement on Main International Traffic Arteries (AGR) • Trans-European North-SouthMotorway Project (TEM) • Vienna convention (signalisation)

29. Comparison of economic return from different types of infrastructure World Bank supported infrastructure projects Source: The World Bank

30. Comparison of land used for roadsas % of country’s total surface Average 0.5 Source: CE based on Eurostat and IRF

31. Evolution of Road Safety Performance (EU27) Road fatalities (all road vehicles) 2000 = 100 • This has been achieved through: • Major improvements of the human factor • Major improvements of the used infrastructure • Major improvements of the vehicle technology Source: EU Energy & Transport in Figures, 2009

32. II. UNECE Conventions The role of road transport is so vital that: of 57 international transport conventions, 33 are UN Conventions aimed at facilitating road transport and trade Road Transport benefits from facilitation instruments

33. G20 leaders call for facilitation of trade and road transport!

34. Any penalty on road transport is an even greater penalty to trade Source: Hague Consulting Group, 1998 * includes lost opportunities

35. 17% 5-year attack rate An IRU-ITF Survey 2008 Securing trade entails protection from organised crime – Secure Parking needed! • 1 in 6 drivers attacked in the past five years (30% more than once)

36. TRANSPark Search Sites around Berlin Site Close-up Route Planning

37. IRU BWTO Graphs(Border Waiting Times Observatory)

38. Inefficient logistics High transaction (trade) costs Lower transport volumes Increased inventories Reduced FDI Poor Competitiveness Road transportmust be facilitated! Inefficient transport/customs procedures discourage investment and make companies and national economies less competitive Transport costs representup to 15% of the export value

39. Border waiting times are costlyfor national economies from 0.5 day to 4.5 days Source: NELTI Final Report, www.iru.org

40. Investment in UN border facilitation is not only cheap, but sometimes costless For exampleThe UNECE International Convention on the Harmonization of Frontier Controls of Goods and the TIR Convention Goal Reduce number and duration of border controls Cheap Implementation does not require large financial outlay, but mainly administrative/organisational measures

41. Today’s Topics • This is the IRU - Structure and Priorities • Road transport regulation andUN Conventions III. Contribution of road transport to the logistics chain, economic development and the environment

42. The combined efforts of 29 companies in 18 countries What does it take to have a cup of coffee in a café? Globalisationand the Logistics Chain Road transport has become a vital production tool! Source: IRU

43. Road transport is the only mode to provide door-to-door service

44. Real GDP growth in % 8 7 6 5 4 3 2 1 0 Real GDP growth, 5Y average Why China grows:the Asian Model If you invest more, If you add more labour, If you have more labour with more investments you will have growth! Source: UBS Investment Bank

45. Saturated Saturated New opportunities resulting fromthe reopening of the Silk Road to US West Coast to US West Coast Sea transport Key:

46. Evolution of sea containersin ports

47. Satellite Intercepts of the World’s Telecommunications in a 24-Hour Period Modern Activity Gap: The blank swath in the northern hemisphere is centred on Central Asia! Source: Centre for Strategic International Studies (CSIS), Washington, DC

48. Itineraries of the Ancient Silk Road up to 700 years ago If the Silk Road worked for Marco Polo, then why shouldn’t it work for trade and road transport today?

49. Saturated Saturated Interconnecting all the businesses along the reopened Silk Road To East Coast Labour costs = $200/month Diesel fuel = 30 cents/litre To US East Coast To Black Sea to US West Coast to US West Coast Sea transport Land transport Key:

50. Saturated Saturated Interconnecting all the businesses along the reopened Silk Road To CIS To East Coast To EU To Mid East to US West Coast to US West Coast Sea transport Land transport Key: